VIJAYAWADA: Minister for MSMEs and SERP Kondapalli Srinivas said Andhra Pradesh was leading all States and Union Territories in SHG bank linkage, with Rs 15,229.40 crore disbursed and an outstanding loan portfolio of Rs 82,639.56 crore as of September 15, 2026, according to NRLM data.
Speaking on Friday, Srinivas said the State government was transforming the SHG credit system to ensure loans helped women increase household incomes, create sustainable livelihoods and achieve economic independence rather than serve as short-term financial assistance.
Digital reforms, including Aadhaar-based biometric authentication and member identity verification, are being introduced to prevent fake memberships and misuse of funds. Real-time dashboards will enable banks to monitor SHG profiles, grading and loan details, while Bank Sakhis will spread awareness among rural women about digital security.
The reduction in registration and service charges is saving each SHG up to Rs 32,500 annually, he said. Interest rates have also been standardised and brought down from 7%-14.50% to 7%-11.70%. Under the Annual Credit Livelihood Plan and Micro Credit Plan, priority is being given to agriculture, livestock and micro-enterprises. The collateral-free loan limit for SHGs has been raised from Rs 10 lakh to Rs 20 lakh as per DAY-NRLM guidelines.
Against the Rs 32,190-crore target in 2024-25, Rs 30,079 crore was disbursed, achieving 93% of the target. The State achieved 99% of its target in 2025-26. In the current financial year, Rs 15,229 crore has been disbursed against the Rs 19,655-crore target set for the period up to September, achieving 78%.
Srinivas expressed confidence that the State would meet its 2026-27 targets through coordinated efforts by banks, SERP and SHG federations.